- Total Revenue up 6% to $10.4 Billion
- Total Cloud Revenue (IaaS plus SaaS) up 22% to $2.7 Billion
- Fusion ERP cloud revenue up 35%, NetSuite ERP cloud revenue up 29%
Today, AUSTIN, Texas — Oracle Corporation (NYSE: ORCL) announced fiscal 2022 Q2 results. Total quarterly revenues were up 6% year-over-year to $10.4 billion. Cloud services and license support revenues were up 6% to $7.6 billion. Cloud and on-premise license revenues were up 13% to $1.2 billion.
Oracle’s Q2 GAAP results were adversely impacted by the payment of a judgment related to a ten-year-old dispute surrounding former CEO Mark Hurd’s employment. That payment resulted in a Q2 GAAP operating loss of $824 million and a loss per share of $0.46. Q2 Non-GAAP operating income was up 6% to $4.9 billion, and earnings per share were up 14% to $1.21.
Short-term deferred revenues were $7.9 billion. Operating cash flow was $10.3 billion during the trailing twelve months.
“Oracle’s Q2 Non-GAAP earnings per share were up 14% to $1.21—beating guidance by $0.10,” said Oracle CEO Safra Catz. “Constant currency revenue beat guidance by $200 million. These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses approaching $11 billion in annualized revenue. We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating.”
“Oracle’s Autonomous Database and new MySQL Database with HeatWave are the world’s two highest-performance databases,” said Oracle Chairman and CTO Larry Ellison. “Because of their extreme high-performance, both products present huge growth opportunities for our cloud infrastructure business. Oracle database on-premise customers choose our Autonomous Database as they move to the public cloud and our unique [email protected] service. Amazon Aurora customers discover that moving to MySQL with HeatWave can increase their performance by more than ten times—with a corresponding cost reduction. These two databases will sustain Oracle’s database market and technology leadership for years to come.”
The board of directors increased the authorization for share repurchases by $10 billion. The board of directors also declared a quarterly cash dividend of $0.32 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 7, 2022, with a payment date of January 19, 2022.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website.
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“Safe Harbor” Statement: Statements in this press release relating to Oracle’s plans, expectations, beliefs, intentions, and prospects, including statements regarding growth in our infrastructure and applications cloud businesses and our future database market and technology leadership, are “forward-looking statements” and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results and could cause actual results to differ materially.
We presently consider the following to be among the crucial factors that could cause actual results to differ materially from expectations:
(1) The COVID-19 pandemic has affected how our customers and we are operating our respective businesses. The duration and extent to which this will impact our future results of operations remain uncertain.
(2) Our success depends upon our ability to develop new products and services, integrate acquired products and services, and enhance our existing products and services.
(3) Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability.
(4) We might experience significant coding, manufacturing, or configuration errors in our cloud, license, and hardware offerings.
(5) If our security measures for our products and services are compromised, and as a result, our data, our customers’ data, or our IT systems are accessed improperly, made unavailable, or wrongly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged, the IT services we provide to our customers could be disrupted, and customers may stop using our products and services, any of which could reduce our revenue and earnings, increase our expenses and expose us to legal claims and regulatory actions.
(6) Our business practices concerning data could lead to operational interruption, liabilities, or reputational harm due to governmental regulation, legal requirements, or industry standards relating to privacy and data protection.
(7) Economic, political, and market conditions can adversely affect our business, results of operations, and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price.
(8) If we cannot compete effectively, the results of operations and prospects for our business could be harmed.
(9) Our international sales and operations subject us to additional risks that adversely affect our operating results.
(10) We are susceptible to third-party manufacturing and logistics delays, which could result in the loss of sales and customers. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle Corporation’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle’s Investor Relations website.